The National Board of Revenue (NBR) is unlikely to accept the local apparel exporters’ plea for re-introduction of special tax rate at 10 per cent. Sources concerned said the taxmen would not be able to offer the special tax rate from mid-year, as many of the exporters have already submitted their returns at the regular corporate tax rate of 35 per cent. However, the board may positively consider the demand in the budget for the next fiscal year (FY), 2016-17, sources said. The special tax at the rate of 10 per cent was applicable for apparel exporters until June 2014. The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) earlier made requests to the NBR for re-introduction of the special tax rate, giving the same retrospective effect from July 1, 2014 and allowing apparel exporters enjoy the tax rate for next ten years. NBR on Sunday sought necessary guidelines from the finance minister on these requests. Earlier, a meeting on January 17, chaired by the Ministry of Commerce senior secretary, decided to seek political guidance to take final decision in this regard. Tax officials said they have explained the NBR’s legal position to the BGMEA representatives on several occasions. Sources said NBR offered the special tax rate for apparel exporters in 2005 through issuance of statutory regulatory order (SRO). But there is no scope to issue such SRO now due to the change brought into the tax law. The NBR discontinued the facility, under which the apparel exporters had enjoyed a special tax rate at ten per cent at the time of annual tax assessment instead of corporate tax rate. Since July 1, 2014, the apparel exporters’ annual tax liability is being assessed at 35 per cent corporate tax rate, in case of company, on their income from export earning.
